(AmericanProsperity.com) – Department stores have usually been a hit across generations, especially since they often sell a wide variety of options, however, with Gen Z, they have been struggling. Needing to appeal to all age ranges, stores are now having to keep up with the competition of online retailers.
Department stores like Nordstrom, Macy’s, and Kohl’s are facing a crisis as they try to appeal to investors with a dip in sales; they’ve had to do what they can to attract younger consumers. Oliver Chen, a retail analyst at TD Cowen said, “When you’re a department store, you need to, and you should, be catering to younger and older.”
Consumer data shows that 40% of Kohl’s customers are baby boomers, and at Macy’s more than 30% of consumers are baby boomers. Nordstrom is the only department store in the group that has a larger number of Gen X shoppers with one-quarter of their consumers being baby boomers.
Nordstrom Rack serves as a cheaper alternative to Nordstrom and appeals to a younger consumer group. All of these department stores have announced some sort of plan to bring in younger consumers even though they still project lower-than-average sales for the year.
These stores have also been struggling like most in this economy considering inflation. Most people are not buying things like bedding, home items, and clothing as they are more frugal with their funds.
Some changes that are expected to take place are that Kohl’s will be adding more trendy clothing to appeal to younger consumers and they will also be opening up more Sephora shops.
Macy’s has been looking into moving their stores where the people are and cloning the ones that don’t get enough foot traffic. Nordstrom is expected to continue partnering with name brands like Skims and Princess Polly to appeal more to a younger group of shoppers.
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